Kerry Logistics Network, the logistics unit of Kerry Properties, is planning an initial pubic offering (IPO) that could raise up to HKD2.2 billion. Established in 1981, the Hong Kong-based third-party logistics service provider plans to use the freshly raised capital to develop logistics facilities on the mainland and in Southeast Asian markets. The company plans to strengthen its presence in China, which represents about 45% of its overall revenue, and to expand into mainland cities by building a 1.3 million square foot logistics center, which is set to commence construction next year. Trading of the company’s shares is due to start on December 19. About 27% of Kerry Logistics’ 30 million sq ft of logistics space is on the mainland. It has expanded its automotive parts distribution center in Kunshan with the 360,000 sq ft center set to open next year. It also aims to build an 878,000 sq ft logistics center in Thailand. Revenue from the mainland rose 8.4% to HKD4.2 billion in the first half of the year, while that from Southeast Asia expanded 20.1% to HKD1.4 billion from newly acquired business in Vietnam last year and the start of a regional logistics hub in Singapore in the first quarter. The logistics operator’s operating margin, a measure of profitability, rose to 12.4% in June up from 8.2% in December last year. Kerry Properties is part of the Kerry Group. Kerry manages 39 million square feet of warehouses and logistics centers in China and Asean countries, of which over 11 million sq ft is in the mainland.